Need to Learn MassChallenge’s Public Service, Competition Model and Mentoring

2018-09-17

Need to
Learn MassChallenge’s Public Service, Competition Model and Mentoring

-KITA, needs to differentiate start-up
fostering models to cooperate with global AC and to foster specialist group -

Some
argue that Korea needs to expand cooperation with Global Accelerators (AC) and
foster industry-government-academia experts specialized in start-ups by
benchmarking the success case of ‘MassChallenge’ of the United States that provides pro bono supports for the
start-ups with great industrial impact and social problem-solving capabilities.

According
to the 'Keys to Success of the Global Accelerator MassChallenge and
Implications’ issued by the Institute for the International Trade (President,
Shin Seung-kwan) of the Korea International Trade Association, MassChallenge is
a non-profit global accelerator that provides pro bono supports and nurtures
start-ups with a view to addressing social issues and challenges. Since its
establishment in 2010 it has contributed to fostering 1,500 start-ups and
creating 95,000 direct and indirect jobs in 81 countries through the seven
major cities in five cities, including its headquarters in Boston as their
base.

The
report selected ▲ the promotion of public service, ▲ establishment of start-up competition model and ▲ operation of mentoring specialists group as the keys to success of
MassChallenge. MassChallenge focuses on solving social problems rather
than on commercial value and profit making, and provides a variety of
infrastructure and services free of charge, without the assumption of acquiring
shares or management rights of the start-ups.With this philosophy, MassChallenge has developed start-ups like
Ginkgo Bioworks, which has grown into a unicorn company, by combining microbial
organisms based on genetic engineering with various industries such as
cosmetics, food, pharmaceuticals and clothing.

MassChallenge
is also actively plays a role to make tangible performances such as
participating in start-up projects and finding investors by running a group of
experts consist of some 1,000 members, including entrepreneurs, professors,
lawyers, accountants, and investors.

In particular, 'Challenge Program', which is called the
'World Olympics of Start-Ups', is a start-up competition model that
MassChallenge massively supports finally selected companies after the screening
process of 5000 participating start-ups every year. It appears that the
start-ups selected by MassChallenge are 2.5 times more likely to attract
investment over $ 500,000 and three times more likely to hire more than 15
employees than other start-ups.

The report states, "In order for Korea to establish
sustainable start-up support system, it is required to change the ways to view
the start-up ecosystem and support." It also stresses, "Korea needs
to strive to change its point of view on start-up ecosystem, connect global
infrastructures and find and foster start-up support experts at the level of
government and support organizations. And, start-ups need to have a global
mindset."

Park Soyeong, a senior researcher at the Institute for International Trade of the
Korea International Trade Association, said, "Korean start-up support
agencies need to consider strategic alliances with global accelerators such as
MassChallenge. It is important to find and nurture professionals who can be
actually helpful in the field of investment attraction by forming partnership
and mentorship with start-ups and systemically manage them."